The surge in lithium prices contributed to a nearly fourfold increase in the profits of Chile's lithium mining giant in the fourth quarter.

Chilean mining and chemical (SQM), the world's second-largest lithium producer, reported results for the fourth quarter of 2021 on Wednesday. SQM's fourth-quarter profit nearly quadrupled, driven by soaring lithium prices.

SQM reported a net profit of $312.6 million in the fourth quarter of last year, well above the $67 million in the same period last year and well above analysts' expectations of $264.4 million. The company exceeded its target of selling about 100000 tons of lithium in 2021.

(source: company website)

SQM CEO Ricardo Ramos said in November that the company aims to sell 180000 tons of lithium by 2022. Ramos reiterated that forecast on Wednesday and said the expansion to achieve its goal would be completed in the coming months.

Chile, which has the world's largest lithium reserves, has been dominated by SQM and its US rival (Albemarle) for years.

However, with the coming of Chile's left-wing government, this situation is likely to change significantly. In February this year, the Environment Committee of Chile's Constituent Assembly adopted a draft plan to nationalize the country's mineral resources. The move marks a key step in the nationalization of Chile's mineral resources. The draft still needs to be voted on by the Chilean House of Representatives and faces a Chilean referendum later this year.

It is worth mentioning that SQM was founded as a Chilean state-owned enterprise, but after the Pinochet junta came to power, Chile began a radical privatization process, SQM also became a private enterprise in the wave of privatization.

Boric (Gabriel Boric), Chile's incoming left-wing president, has said he wants to create a state-owned lithium mining company and that Chile can no longer make the "historical mistake of privatizing resources".